Sendhil Mullainathan
Sendhil Mullainathan
Sendhil Mullainathan)is a Professor of Economics at Harvard University, and the author of Scarcity: Why Having Too Little Means So Much. He was hired with tenure by Harvard in 2004 after having spent six years at MIT. He is a recipient of a MacArthur Foundation "genius grant" and conducts research on development economics, behavioral economics, and corporate finance. He is co-founder of Ideas42, a non-profit organization that uses behavioral science to help solve social problems, and J-PAL, the MIT Poverty...
NationalityAmerican
ProfessionEconomist
CountryUnited States of America
call people prices staring
People go shopping, we spend on so many things, and we just don't know. We don't know the prices of things. But gasoline, even when you're not buying, it's staring you in the face. Psychologists call this 'salience.'
onto people pictures sort type
You can get pictures into what people are sort of thinking about others. Just go onto Google and type 'Why are Indians' and then look for the autocomplete.
ahead good last people
No one would say, 'Hey, I think this medicine works, go ahead and use it.' We have testing, we go to the lab, we try it again, we have refinement. But you know what we do on the last mile? 'Oh, this is a good idea. People will like this. Let's put it out there.'
amazing deadline few four next people send tend time week within
If you send out one coupon with a deadline of a week and another that must be used within the next month, you end up having more redemptions with the one week deadline. It's really amazing. With the month deadline you have four times as much time, but people tend to say they'll use it in a few weeks' time and then they don't do it.
less might people productive safe work worse
It is safe to say that when people are short on cash, they might be less productive at work, be worse parents, and have less self-control.
assume bandwidth basic busy call cognitive control executive mean memory nearly people resources scarce short time
Busy people all make the same mistake: they assume they are short on time, which of course, they are. But time is not their only scarce resource. They are also short on bandwidth. By bandwidth I mean basic cognitive resources - psychologists call them working memory and executive control - that we use in nearly every activity.
future hard image lacking less people popular save saving scarcity
There's a popular image of people who don't save for the future as lacking in self-control. But the reason saving is so hard has less to do with self-control and more to do with a scarcity of attention.
people perhaps
People will often take an interesting experimental study which has been done in the world, perhaps at small scale, and then it's touted as some big solution.
empathize gives hard people realized scarcity sympathize
It's hard to get people to empathize with the poor. You can get some people to sympathize with the poor, but to empathize is actually very hard, because most people are not poor. I realized that scarcity gives you a thread.
ask middle people
If you go and stop people at a supermarket and ask them for their receipt and say, 'Hey how much did you just spend?' middle class shoppers have no idea. The poor know what they just spent.
people littles way
The scarcity trap captures this notion we see again and again in many domains. When people have very little, they undertake behaviors that maintain or reinforce their future disadvantage. If you have very little, you often behave in such a way so that youll have little in the future.
Things that price at $4.99 sell very differently than things that price at $5.
break couple money rich until weeks work worrying
You and I can be busy, and we take a vacation from work. You can't take a break from being poor. You can't say, 'Hey I've had enough of worrying about money, I'm just going to be rich for a couple of weeks until I've recovered.'
anyone case experience maybe
Maybe poverty is a special case of something else. That something else is 'scarcity,' and anyone who has the experience of 'having very little' experiences the same psychology.